Building protection for 60,000 workers: Global Accelerator advances progress on Malawi’s Workers’ Compensation Fund

Lilongwe, MALAWI (ILO News) - For years, thousands of workers in Malawi have faced uncertainty when workplace injuries occur. Although the Workers’ Compensation Act provides a legal framework for compensation, the current employer liability system has faced several challenges.

Workers and employers have often experienced delays in processing claims, costly court cases, fraudulent claims, and difficulties accessing insurance coverage. These challenges can leave injured workers and their families without timely support when they need it most.

To address these issues, the Ministry of Labour, Skills and Innovation, with financial and technical support from the United Nations (UN) Global Accelerator on Jobs and Social Protection for Just Transitions Joint Programme, convened a stakeholder policy dialogue from 23 to 26 June 2026 on the phased implementation of a Social Insurance Workers’ Compensation Fund.

The meeting brought together representatives from the Tea Association of Malawi (TAML), the Plantation and Agriculture Workers Union, the Malawi Congress of Trade Unions (MCTU), the Employers’ Consultative Association of Malawi (ECAM), and the International Labour Organization (ILO).

“The Government remains committed to establishing an effective and sustainable Workers’ Compensation Fund. The proposed Fund responds to a long-standing demand from both employers and workers for a system that delivers predictable, timely, and equitable compensation while ensuring long-term financial sustainability,” said Mr. Arthur Ntandika, Workers’ Compensation Commissioner.

The tea sector was selected as the starting point because it is Malawi’s largest private-sector employer, providing jobs to about 60,000 workers during peak seasons and supporting thousands of smallholder farmers. Improvements in employment injury protection in the sector therefore have the potential to benefit thousands of families.

The ILO highlighted that employment injury protection is a key pillar of social security and that social insurance schemes are internationally recognized as the preferred approach to protecting workers against workplace accidents and occupational diseases. Such schemes spread risk across employers, ensure access to benefits, and provide greater financial sustainability than traditional employer liability systems.

The discussions also extended beyond the meeting room. Participants visited tea estates in Thyolo and Mulanje, where they met estate managers and members of tea growers’ associations. The visits revealed strong support for the proposed Fund. Employers expressed willingness to contribute, while workers and local stakeholders welcomed the prospect of a more efficient compensation system that could reduce disputes and build trust.

A strong spirit of partnership emerged throughout the consultations. Government, employers, and workers agreed that successful implementation will require continuous dialogue, awareness raising, transparency, and shared responsibility. Stakeholders also recommended that the Fund be managed by an autonomous institution with strong employer and worker representation to ensure accountability and public confidence.

“The need for reform is becoming increasingly urgent for employers. Many tea estates are facing growing challenges in managing compensation claims, including rising litigation cases, delayed settlements, and declining trust in the existing system. More recently, some insurance companies have stopped renewing workers’ compensation insurance policies, leaving employers exposed to significant financial risks and workers uncertain about their future protection. The proposed Fund offers an opportunity to replace these challenges with a more reliable and collectively financed system,” said Mr. Sangwani Hara, Board Chairperson of the Tea Association of Malawi (TAML).

The dialogue resulted in a roadmap for phased implementation, strengthened partnerships, and agreement on immediate next steps. These include engaging the TAML Board, distributing awareness materials across the tea sector, reviewing costing assumptions with ILO support, and expanding the initiative to other sectors, including manufacturing.

For Malawi’s tea workers, who often work under demanding conditions, the proposed Workers’ Compensation Fund represents more than a policy reform. It is a commitment to dignity, security, and protection. For employers, it offers a more predictable and sustainable compensation system. Together, these efforts mark an important step toward ensuring that no worker or family is left without support when workplace injuries occur.

“Injured workers often face significant delays in receiving compensation, placing immense financial strain on their families. The proposed Workers’ Compensation Fund can strengthen social protection, promote decent work and social justice, and ensure that injured workers receive the support and benefits they need when they need them most,” said Mr. Falison Lemani, Treasurer General of the Malawi Congress of Trade Unions (MCTU).